Technical Analysis

Sizzling Stocks - Ranbaxy Laboratories (Rs 469)

Yoganand D. | Updated on March 10, 2018 Published on March 31, 2012

After taking support in the price band between Rs 400 and Rs 410, Ranbaxy skyrocketed 13 per cent with good volumes in the last week. With this up move the stock appears to have resumed its medium-term uptrend that has been place since its December 2011 trough.

However, the stock is facing key long-term resistance ahead at Rs 475 and the 200-day moving average is around this level.

Following a testing of this resistance at Rs 475, a conclusive breakthrough of it will take the stock higher to Rs 510 and then to Rs 530 in the medium-term. Next resistance is at Rs 555. Conversely, failure to surpass the aforesaid resistance will pull the stock down to Rs 445 or even to the Rs 400-410 support band in the same time frame. A fall below Rs 400 will mar the stock's medium-term uptrend and drag the stock down to Rs 370 and then to its long-term significant support at Rs 350.

Pidilite Industries (Rs 177.5)

Pidilite Industries zoomed more than 12 per cent in the previous week, emphatically breaking out of key resistance at Rs 159 and Rs 168. But the stock is presently testing its important long-term resistance at Rs 180. The stock has breached the upper boundary of its daily Bollinger band. Further, its daily indicators and oscillators are featuring in the overbought area implying that the stock is on the brink of a near-term correction.

Hence, a downward reversal can pull the stock down to Rs 169 or to Rs 164 in the short-term. As long as the stock trades above Rs 159, its medium-term trend remains up. A decisive rally above Rs 180 will take the stock to new highs of Rs 200 and then to Rs 212 in the medium-term.

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